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In the wake of Hurricane Katrina's wide path of destruction, the real estate market will be affected perhaps in ways not fully understood or expected. If recent hurricane recovery history holds true there will be several good things to come out of all destruction. Let's hope so as those who live in the Delta region have suffered immensely.

In September 1989, a strong category 4 hurricane by the name of Hugo made landfall in the Charleston Caoimhin Kelleher Jersey UK , SC area. Up to that time it was the strongest hurricane to hit the U.S. mainland since Camille whacked the Gulf coast in 1969. The damage from Hugo was extensive with entire forests wiped out and fishing villages and seaside resorts heavily damaged. Dire predictions of the storm's negative effect on the local economy were made. I know, because I was living in the nearby town of Goose Creek when Hugo roared through; I witnessed a sustained and lengthy recovery effort for many months thereafter.

These were some of my personal observations of that hurricane's impact on the housing market:

1. Housing stock destroyed. Yes, the number of mobile homes Blank Jersey UK , apartments, and single family homes damaged or destroyed by Hugo was large. What had been a fairly open pre-hurricane housing market quickly tightened up as the vacancy rate plunged to near zero as all available, undamaged property was suddenly snapped up. Rental rates Andrew Robertson Jersey UK , which had been on the low side, suddenly shot up and stayed up even as the housing stock was replenished over the next year. The net effect of Hugo was that older, substandard housing was replaced by more modern housing built with the latest building code requirements included. Rental rates rose accordingly to reflect the improvements.

2. Insurance payments. Although the property I was living in did not sustain much damage Alisson Becker Jersey UK , some of the homes in our neighborhood did. Within days of the storm's wake insurance agents were canvassing neighborhoods, filing claims, and issuing checks on the spot. The quick move of the insurers allowed people to run out and make needed repairs quickly. Oftentimes Alex Oxlade-Chamberlain Jersey UK , the amount of the check more than covered actual damage thereby allowing homeowners to make both structural and aesthetic improvements to their properties. These improvements were credited with fueling the subsequent surge in local home prices.

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